Most industry pundits predict that business travel airfares will continue to rise through the rest of this year and even into 2023.
It is forecast that business travel prices are set to increase by almost 50% in 2022, according to a report from the Global Business Travel Association. Next year, fares are set to increase more than 8%, the organisations projected.
In South Africa, costs on the most popular domestic routes (Between Johannesburg-Cape Town and Durban-Cape Town) have increased by a gigantic 70%-111% from 2019. If you book last minute you can expect to pay over R6000 for a return ticket in some instances.
According to SAA interim Chief Commercial Officer Tebogo Tsimane, airlines were dealing with much higher input costs. In addition to rising jet fuel costs, operating costs are affected by the exchange rate, which inflates the costs of parts and aircraft lease rates.
It is not all doom and gloom, though.
The air travel industry is in a recovery phase. As more businesses realise the importance of reintroducing business travel to ensure the long-term sustainability of their organisations, so the travel demand will continue to grow. Airlines are re-employing staff, re-building their fleets and taking on new routes, all key stepping stones on the road to recovery.
To sum it up, the adage: necessity is the mother of all invention, is what we consistently need to bear in mind. Now is the time to evaluate who in your business should be travelling and why. Using this lens to plan your travel allows you to consider other factors – such as the well-being of your staff and the environmental impact of your travel. By using the right data and being more strategic, your return to travel can be better for your business and the planet in the long run.
Some see change as a good thing while others see it in a more negative light. The truth is that how you adapt will determine whether this change becomes the former or the latter.
Speak to us to see how we can work together to help you recalibrate your travel programme.
